For the past couple of years, the New York State was been categorized as one where individuals and businesses were highly taxed. This led to the state population declining to an unexpected level. This bring to attention and deep concern to economist, political activists, businessmen/women and other economic stakeholders on fear of dangers and benefits the Snyder proposed budget can contribute to Michigan state. Actually, developing budgets committed to raising taxes is not based on tax revenues collection perspective. It is based on the approach of increasing jobs opportunities, promoting and establishing reforms, balancing taxes, cuts down budget expenses, and develops, grow and strengthen state’s economy. In the Governor Snyder’s proposed budget, it is aimed to bring into light power of jobs creation, eliminating the burden of taxes, bringing reforms to all sectors of the state, and induce cost cuts measures to the K-12 education through higher education. This easy tries to analyze and examine various budget economic and sector, benefits and dangers accrued to the proposed $45 billion budgets.
The Michigan year 2011/2012 budget brings to streamline the states budget with the United Nation’s yearly budget (Nixon, A 1). This means, according to Senator Snyder, it focuses to streamlining state spending and creating a fair, simple, and efficient tax collection system to individuals and businesses. Senator Snyder said as quoted from Michigan Truth Squad, p. 1, that, “This is a comprehensive plan to lay a new, sound foundation in the Michigan state’s reinvention and puts forward an end to significant budgets deficits that the state has experienced for the past decade”. Some of important budgets targets and element for the fiscal year 2011/2012 include job creation, declaring Michigan as place for business, support of the early education K-12, and higher education, cutting down budgets costs, and facilitating structural reforms.
As found on the Bureau of labor statistics in United State, Michigan unemployment rate as per last year results were 12.4%. In history, for the past three years Michigan has never recorded an unemployment level of less than 10 percent. For this purpose, job creation thought brought up by the senator, will probably lead to lowering the unemployment rates. According to the governor’s budgets recommendations, Michigan economic and fiscal issues are dealt with by growing economy through restructuring of the individuals and business taxes (Nixon, A 3). Economic growth will reduce unemployment rate through job creation and still making the state more competitive for business opportunities (Nixon, A 5). Further, the restructuring of taxes across the state will improve the quality life to Michigan citizens. The states business tax as per the budget recommendation is to replace business tax with corporate income taxes. In the past establishing Businesses Tax system in the State made the business environment unfriendly and this lead to State recession. According to the proposal, Nixon, A 5, replacing Michigan business tax therefore will play a bigger boost to economic recovery and jobs creation in return. Entrenching into the State tax operations fair, simple, and efficient Corporate Tax System will perhaps bring in a competitive business field for all likes of business. Business ranging from small, big, industries, among other will play a significant role in jobs creation and thus reduce unemployment rates. Through this all and among other tax restructuring measures will enable citizens to engage into reviving and reinventing Michigan State.
For leveraging the economic growth and the structures, the budgets proposed bring forth a loss of tax revenues from business taxes, which is to be streamlined by the year 2013 (Nixon, A 6). Further, tax collection should be based on more equitable, fair, simple, and efficient base to all the State’s citizens. To promote these taxation principles, the budget proposes to tax all citizens irrespective of the source of income at a flat rate of 4.25 percent (Nixon, A 5,). In addition to this consistence of taxpayers’ tax deductions, the senator argues that eliminations of major exemptions to persons with disabilities, veterans, and military personnel’s will enhance the equitability principle.
Education is another element that is hardly hit by the budget proposals. Many K-12 managers and principles have argued it as a step to make education cost increase and the burden is directly transferred to parents. Economic Experts argue that by making significant cuts to K-12 education will blow a devastating effect to the schools within Michigan State. Cutting K-12 education funding to $12 billion will mean the schools cutting down its programs cost (Nixon, A 7). The devastating effect will be laying down staffs, which is argued to increase unemployment, and cutting costs relating to schools administration and non-academic activities (extra-curriculum activities) (Farris, p.1). As noted from Michigan Truth Squad, p. 1 the governor cuts of education fund and especially to the K-12 education level, is a major cut in the history of Michigan budgets. The idea of developing State and creating jobs worsen by the education proposal. For education institutions to create jobs, retain and attract employees there is a need to debate on the cost-cutting measures other than funding options (Farris, p.1). Education budget occupies a significant percentage of the states total budget. For example, the proposed budget provides 53 percent of the budget to the education (Michigan Truth Squad, p. 1). In this regards, cutting down of funds to educational system will translate more shocks to other sectors that will erode the budgets spirit of job creation, free, fair and equitable, and efficiency.
Health care and medical services are other budgets sensitive and essential parts. Michigan State provides these services with collaboration with the federal government. Actually, the sector budget is far much influenced by the United State federal government budget (Michigan Truth Squad, p. 1). The senator’s proposal anticipates the actions of federal actions on health care. The support to continued investment in the human services and health care from the budget is a major boost to allocation practices and improving quality of life to citizens. Provision of better service to the people of Michigan is actually incorporated in a well-managed and improved service delivery system. In addition, for improved service delivery and well-managed health care, partnership with private sector plays a significant role (Nixon, A 10). The proposed budgets campaign for an enhanced relationship between other private stakeholder in key institutions and the State.
Governor’s Michigan proposed budgets reductions and policies are quite challenging. Especially in the area of education, technology and medical programs, the budget focuses on cutting cost at an acute approach. In most institutions affected by the budget cost cutting measures, heads and managers need to view another approach in effecting or successively responding to the budgets shocks. Even as systems encounter decline to State’s fund supports, institutions should notably continue with their strategic priorities and policies. For example, technology improvement in learning institutions should not be deterred by the proposed budget cuts.
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